Court Approves Borders’ Plan To Auction Its Name

by San Antonio Attorney

Borders Group Inc’s plan to sell its real estate assets as well as its name was approved by a bankruptcy judge on Wednesday.

The bookseller’s plan to auction its assets and name is its most recent move in the liquidation.

U.S. Bankruptcy Judge Martin Glenn authorized the proposal to hold intellectual property rights auction on September 14. The auction sale will include its website, brand name, trademarks, and lists of customers. The name of the second largest bookseller in the U.S. could possibly continue as Internet-based.

The judge also allowed Borders to group its leases into two. The auctions for the leases are scheduled on August 31 and September 13.

The first group of leases includes those that should be broken or assumed by September 30, along with the leases of some of the smaller stores. The rest of the leases that do not belong to the said categories are going to be auctioned on the second schedule. Court hearings to confirm the auction results are set on September 8 and September 20.

Borders extended the deadlines when many of its landlord groups and individual landlords opposed to its original plan that gave them inadequate time to screen buyers if they would be able to fulfill the duties of the bought leases.

Although the judge acknowledged the objections of some landlords about the pace of the procedure, he also said it is necessary for the liquidation to move along. If certain landlords are concerned about the timing, they are allowed to work out extensions with Borders individually.

Borders filed for bankruptcy in February as it was struggling with the competition from other booksellers, particularly online sellers, and Barnes & Noble Inc’s Nook.

It attempted to sell itself to Najafi Cos in order to save the company. However, the deal collapsed due to creditor objection, driving Borders to close all its stores.

 

-      Bankruptcy is a complex area of law, and federal bankruptcy laws are more rigid than ever. A San Antonio bankruptcy attorney’s knowledge, attention to detail, and planning can help you have a successful bankruptcy.

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